This pensions permanent disability, retirement, widowhood, orphanage and in favor of the relatives of the Social Security system in terms of the form of premium payment, which occurred before January 1, 2023 and not simultaneously with the others, already revalued 8.5 percent. The hike came into effect as of January 1, 2023, and retirees will already get their benefits with the updated tables on this month’s payroll. The increase in the contribution pensions, which is the most common among retirees and currently received by approximately 10 million people, will increase by 8.5% in 2022, as a result of the average development of the CPI.
2023 will be the second year that the new formula for the automatic annual revaluation of contributions will be implemented, agreed by the Minister of Inclusion and Social Security, José Luís Escrivá, with employers and unions. This is the result of calculating the average inflation between December of the previous year and November of this year. What results in 8.5% for the next workout. In other words, if the average pension is currently 1,141.63 euros (according to the October payroll), it will increase by an average of 97 euros from January to 1,238.7 euros. All contributory pensions for widowhood, temporary disability or orphanhood will increase in the same proportion. However Permanent disability pension benefits the most from the increase in 2023 because they are exempt from Tax Office contributions and therefore do not have to present the Income Statement for 2022.
Minimum pensions will also increase by 8.5 percent
Currently the minimum non-contributory pension is €484.61 per month, once extraordinary agreed with Manager EH Bildu to increase these subsidies by 15%. Next year the Government has extended this extraordinary increase and in 2023 minimum non-contributory pensions will continue at 484.61 euros per month. There are about 428,000 people in Spain who receive some form of non-contributory pension – either minimally or for disability. On the other side of the scale, maximum contribution pension will increase to 3,059.2 euros per month. In this sense, the maximum contribution base will increase by 8.5% in line with pensions.
There will be no ‘Paguilla’
While the revaluation of pensions to the previous year’s average CPI was a novelty last year, these 2023 regulations are already in place and will not be necessary for the second year in a row. a compensatory ‘paguilla’ for the transition between one computing system and another. Something happened last year, when pensions rose 0.9% at the beginning of the year relative to expected inflation for this year, and knowing the average inflation twelve months later, that’s the difference between 0.9% and 2.5% at the end. of the year. From now on, traditional ‘paguillas’ are disappearing from the payrolls.